topic Re: Bk friendly car leases ch13 in Bankruptcy

Bk friendly car leases ch13

Anonymous — Mon, 26 Jul 2021 16:40:41 GMT

In the third year of our chapter 13. Our old lease is due back in a month and we got permission to shop for a new car lease from the trustee..scores are all around in the 620's fico. We wanted to see other people's experiences and approvals

Re: Bk friendly car leases ch13

Horseshoez — Mon, 26 Jul 2021 17:01:15 GMT

@Anonymous, I think a lot depends upon any financial constraints your Trustee put on you. I have also heard some Trustee's keep a list of dealership finance departments in their area which are Chapter 13 friendly; I would definitely ask about that.

Re: Bk friendly car leases ch13

Anonymous — Mon, 26 Jul 2021 17:17:47 GMT

She gave us 39 months @$565 per month...nothing above that

Re: Bk friendly car leases ch13

Anonymous — Mon, 26 Jul 2021 18:05:48 GMT

I cant see you getting approved for any lease let alone a loan for less than 10% interest. Leases are notoriously harder to get approved for than loans. You will be very lucky to get an approval at all on a lease with an open 13 even with the trustee letter. Dont kill your credit trying either. Penfed will approve you for an auto loan in a open 13 if you are good otherwise. Low DTI and decent credit otherwise aside from the BK. I would forget the lease. You are going to pick up a ton of inqs while shopping around trying to find a dealer captive lender that will lease.

Re: Bk friendly car leases ch13

Anonymous — Mon, 26 Jul 2021 20:26:18 GMT

Ok thank you for that info, I was completely thinking the opposite

@Anonymous wrote:
I cant see you getting approved for any lease let alone a loan for less than 10% interest. Leases are notoriously harder to get approved for than loans. You will be very lucky to get an approval at all on a lease with an open 13 even with the trustee letter. Dont kill your credit trying either. Penfed will approve you for an auto loan in a open 13 if you are good otherwise. Low DTI and decent credit otherwise aside from the BK. I would forget the lease. You are going to pick up a ton of inqs while shopping around trying to find a dealer captive lender that will lease.

Re: Bk friendly car leases ch13

Anonymous — Mon, 26 Jul 2021 21:15:46 GMT

What about carvana?

Re: Bk friendly car leases ch13

incognitony — Tue, 27 Jul 2021 02:13:26 GMT

With car prices so ridiculous , you might want to buy your car If you still like it. Also, Carvana would likely be higher interest rates and I'm not sure about their bk policy.

Re: Bk friendly car leases ch13

coreyb80 — Tue, 27 Jul 2021 21:42:25 GMT

@Anonymous wrote:
What about carvana?

Nope they won't touch you with an open 13.

I was able to get a new car loan with Penfed a couple of months ago @ 6%. Very easy process! I'm currently in 13 with 2 more payments left.

Re: Bk friendly car leases ch13

Anonymous — Wed, 28 Jul 2021 00:24:06 GMT

Carvana absolutely will "touch you" in an open 13, but they require a trustee letter. I was preapproved with them with my open 13. The rate was 8.75-11.75 depending on the car.

Re: Bk friendly car leases ch13

coreyb80 — Wed, 28 Jul 2021 12:36:48 GMT

@Anonymous wrote:
Carvana absolutely will "touch you" in an open 13, but they require a trustee letter. I was preapproved with them with my open 13. The rate was 8.75-11.75 depending on the car.

I tried and was denied because of my open 13. They didn't even ask for a letter. I guess it's a YMMV with them.

Re: Bk friendly car leases ch13

jmw1 — Thu, 29 Jul 2021 00:48:46 GMT

Are you in a 100% plan?

If you're not, the math may not work out very well for you depending on how hostile the trustee is, the legal fees, and the means test you took at the beginning of the case. So every case is going to be different starting with the payback percentage.

Re: Bk friendly car leases ch13

Anonymous — Sat, 31 Jul 2021 16:14:03 GMT

Approved at carvana at 5.89 interest..bought car,spoke to underwriter and was told as of august 2020,they no longer can accept open bankruptcies due to Covid protocols...you useto be able to secure financing with trustee approval but they have changed their policies.that was under my credit

my husband was denied Penfed next....now we have no idea what to do

Re: Bk friendly car leases ch13

incognitony — Sat, 31 Jul 2021 23:04:50 GMT

Carmax? Not sure about their policy.

Re: Bk friendly car leases ch13

coreyb80 — Mon, 02 Aug 2021 19:16:04 GMT

@Anonymous wrote:
Approved at carvana at 5.89 interest..bought car,spoke to underwriter and was told as of august 2020,they no longer can accept open bankruptcies due to Covid protocols...you useto be able to secure financing with trustee approval but they have changed their policies.that was under my credit

my husband was denied Penfed next....now we have no idea what to do

I would try a local credit union, if you have one. That way you can go in and talk to someone to explain your situation to them. Maybe they'll be willing to help.

Re: Bk friendly car leases ch13

Anonymous — Sun, 15 Aug 2021 14:18:44 GMT

Went to our local credit union who we have been banking with for awhile...explained our situation,provided proof of income...was still denied only because of an active bankruptcy...spoke to my lawyer and he is of absolutely no use...we have no idea what to do and our car lease is due back in 9 days

Re: Bk friendly car leases ch13

Horseshoez — Sun, 15 Aug 2021 14:28:22 GMT

@Anonymous wrote:
Went to our local credit union who we have been banking with for awhile...explained our situation,provided proof of income...was still denied only because of an active bankruptcy...spoke to my lawyer and he is of absolutely no use...we have no idea what to do and our car lease is due back in 9 days

I would reach out to your Trustee; I have seen it reported some Trustees keep a list of dealerships which will work with folks in an active Chapter 13.

Your other option, which I had to use during my Chapter 13, is to buy an older car for cash and ride it out until your discharge. In my case, I got lucky, I bought an 11-year old car with 114,000 miles on it, but was in otherwise good condition; that car is now 15-years old, has 175,000 miles on it, and I like it so much I have no plans on upgrading to something newer.

Re: Bk friendly car leases ch13

Anonymous — Tue, 17 Aug 2021 20:03:07 GMT

Unfortunately that's not really an option at the moment. We did that for my husbands car who drives to the train station. It's a beater car that is also on its way out. Myself I need a bigger and reliable car to drive all my kids to school and to drive 30 miles each way to school(I'm a teacher)

@Horseshoez wrote:
@Anonymous wrote:
Went to our local credit union who we have been banking with for awhile...explained our situation,provided proof of income...was still denied only because of an active bankruptcy...spoke to my lawyer and he is of absolutely no use...we have no idea what to do and our car lease is due back in 9 days
I would reach out to your Trustee; I have seen it reported some Trustees keep a list of dealerships which will work with folks in an active Chapter 13.

Your other option, which I had to use during my Chapter 13, is to buy an older car for cash and ride it out until your discharge. In my case, I got lucky, I bought an 11-year old car with 114,000 miles on it, but was in otherwise good condition; that car is now 15-years old, has 175,000 miles on it, and I like it so much I have no plans on upgrading to something newer.

Re: Bk friendly car leases ch13

Horseshoez — Tue, 17 Aug 2021 22:57:33 GMT

@Anonymous wrote:
Unfortunately that's not really an option at the moment. We did that for my husbands car who drives to the train station. It's a beater car that is also on its way out. Myself I need a bigger and reliable car to drive all my kids to school and to drive 30 miles each way to school(I'm a teacher)

I guess I needed something in between, at the time I had about a 50 mile daily commute; and while my car was old and had a pretty fair number of miles on it, I would hardly call it a beater, and wouldn't hesitate hopping in at a moment's notice and drive across the country. With the proper care and maintenance, an older car can easily be as reliable as a new car.

Re: Bk friendly car leases ch13

jmw1 — Wed, 18 Aug 2021 18:09:50 GMT

@Anonymous I'll suggest something out of desperation - try cold calling some chapter 13 lawyers/firms who do a ton of cases and see if they have a list of local auto lenders/dealers they can give you. Usually lawyers belong to the debtors bar and are on email lists with other BK lawyers so your attorney should be reaching out to his colleagues for a list of lenders/dealers.

In general though, I don't advise getting an auto loan or lease after filing the 13. You scrimp and save for a broken car, broken roof, bad plulmbing, etc. After you find a car, start building up a savings account for emergencies.

Re: Bk friendly car leases ch13

Anonymous — Sat, 21 Aug 2021 20:05:28 GMT

So Carmax was able to approve us easily. No letter required from the trustee but we did tell her and our lawyer. My Lawyer said since covid, banks have been a lot more stricter so the dealerships he recommended that have worked with open bk's before might not now. Anyway we picked up the car this morning. 60 months at 8.45%...interest rate is what it is,we'll take and refinace in 2.5 years when we're out of this.